Students Pressurized by Private Agents to Repay Loan

K Lenin an engineering graduate who had got education loan from nationalized bank committed suicide on Saturday as he was pressurized by the bank to repay his loan amount. He had obtained 1.90 lakh educational loan from State Bank of India for his Civil engineering course found hanging in his house at Madurai.

Parents, experts and social activists are strong opposing the move of SBI to outsourcing educational loans to private agents. These private agencies go to any extent to recover the loan amount from students. Their pressurization on students and their parents makes the student to take extreme step like Lenin's case.

State Bank of India had transferred its educational loan amounts terming non-performing asset (NPA) to Reliance. As per the experts these private agents may go any level to acquire the loan amounts from the students. They make frequents calls to them that take up to the depression stage. Some billionaires and industrial persons are taking away some thousands of crores from the banks and staying in foreign nationals safely. But it is panic that these poor students is forced to hang over themselves says the Students Federation of India (SFI).

Bank expert say bankers have to follow the rules and procedures to collect he loan amount. It should not be allegedly force to repay the amount. And also students should not take this extreme step they have to face the condition legally and they need not be panic. They need not bound to answer this private agents instead they can approach bank and make a request.

People staged protest condemning the move of private agents at South Veli Street in Madurai on Sunday. Some political leaders urge government to take action against these bank agents. They say reserve Bank of India should prevent banks from allocating private agents to collect loan amount.